Is Equity Release taxable?
Equity release lumps sums are tax free
Equity release is not taxable and any money you release from your home with an Equity Release plan is completely tax free.
Releasing equity from your home may affect any means tested State Benefits you receive and we highly recommend you talk to the HMRC, Citizens Advice or your Local Council on which, if any benefits may be affected by you releasing equity from your property.
Your Time Equity Release are not qualified to give you advice on your means tested State Benefits, however we will inform you if we believe any benefits may be affected. It is our understanding that if you have savings or investments valued between £6,000 and £16,000 your means tested benefits could be affected.
Releasing equity from your home ONLY affects means tested benefits, the State Pension is NOT affected in anyway by releasing equity from your home.
Your means tested benefits are only affected if you have savings or investments valued at over £6,000. Releasing an amount over £6,000 to repay a mortgage or other debts will NOT affect your benefits.